Solv Protocol has made a bold move! It has announced plans to create an on-chain Bitcoin reserve valued at $100 million. More importantly, the Solv team had previously revealed a significant piece of news: future Solv tokens will be directly linked to the Bitcoin reserve and the protocol's revenue. Now that the Bitcoin reserve plan has been officially finalized, an upgrade to the economic model is likely not far off.
This move is quite clever, directly tying the token's value to tangible assets and earnings, clearly paving the way for long-term development. Once the subsequent details are finalized, it may trigger a wave of positive market sentiment, as this type of strategy is still quite imaginative in the current DeFi market.
However, at present, Solv's market capitalization is only $60 million. Given its ambitious goals and potential, is this valuation a bit too low to grasp? These days, Solv has been rallying; could there be insider funds accumulating? Let's wait and see.